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CONSUMER PROTECTION ACT—1986
Consumer is at the core of business world in the present day economy. Quantity and quality of goods are produced as per the needs of the consumer. Advancement of any business unit depends on the satisfaction of the consumer. That product will be in great demand which gives maximum satisfaction to the consumer and so will be produced on large scale. As a result, the concerned production unit will develop and earn large profit. Despite the Fact that Importance of the consumer is widely recognized, he is deprived of his rights and privilege and is subjected to diverse kinds of exploitation. For instance exploitation in the form of short weight and measure poor quality of the product, adulteration, supply of fake goods, boarding and black marketing of the goods, delivery of goods not on schedule. Not only that, even doubtful and false advertisements are indulged into by the producers to attract consumers. With a view to protecting the consumers from such exploitation and making them aware of their rights, a method of consumer protection has been launched. Need for protection arid satisfaction of the consumer is now being widely recognized across the world. India has also adopted the concept of consumer protection more seriously and vigoursly. Meaning of Consumer Protection: Consumer protection means the protection of the consumers from their exploitation by the unfair trade practices of the producers/sellers. In fact, providing proper protection of the fundamental rights and Interests of the consumers, freeing them from exploitation, creating consumer awareness, consumer providing the right to clean business environment to the consumers by means of Legal amendments Is all that protection means, Consumer Protection Act In India: In India, Central and State Governments have passed various legislative enactments regarding Consumer Protection. Among them, main Acts are: • • • • • • • • • • • Drug and Cosmetics Act 1940, Industries Development and Regulation Act 1951 Indian Standards Institution (Certification Marks) Act 1952 Prevention of Food Adulteration Act 1954 Essential Commodities (Supply) Act 1955 The Trade and Merchandise Marks Act, 1958 Monopolies and Restrictive Trade Practices Act 1969 Packaged Commodities Regulation Order 1975 Standards of Weights and Measures Act 1976 Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act 1980 Standards of Weights and Measures (Enforcement) Act. 1985.

Thus. Consequently. Second. to seek remedy under these various acts consumer had to take legal action Involving lot of time and money. SCOPE AND EXTENT OF THE ACT: 1. consumer in general had no knowledge about the authority to whom complaints under these acts were to be addressed. This Act shall apply to all goods and services that come under the scope of this Act. There are many reasons for it. The objectives of the council are: . to protect properly the interest of the consumers and to settle quickly their disputes. Main Elements/Features of Consumer Protection Act. this Act does not limit or reduce the scope of any other Act Under this Act. Provisions of this Act are in addition to the provisions of any other Act in force In the country. Except Jammu and Kashmir state. .to educate and protect them.2
In spite of above Acts Interests of the consumers were not being properly safeguarded. Last amendment In the Act was made in. 2. Need was therefore felt to enact such a legislative measure as provide quick and less expensive remedy to the aggrieved consumer. there Is a provision for the Centre and State Governments to set up Consumer Protection Councils composing of both official and non-official members. 2002. Main features of the Act are as under • • • It applies to all kinds of goods and services. 3. 1986: Consumer Protection Act is the most progressive Act of Social well are and is referred to as Magna Carta of consumer protection. It is a land mark event In the history of Acts In India. First. in December 1986 Consumer Protection Act was passed in India. Provisions of this Act are In addition to the provisions made previously in the context of the consumers. this Act extends to whole of India.to promote the rights and Interests of the consumers. 1987. but main among them are two.
. It was enforced with effect from April 15.

unsatisfactory or deficient services and unfair trade practices. colour. life and property. Under this right. consumer can choose any from among the variety of goods and services available in the market. design and price produced by different manufacturers. has the right to safety from all such goods as well as are likely to cause harm to his body and health. Consumer therefore. ineffective and dangerous goods available in market. adulteration. shape. To redress the grievance. If any person (manufacturer. consumer has following rights: (I) Right to Safety: Consumer has the right to be protected against marketing of such goods and services as are hazardous to health. o Right to consumer education. to be adequately informed about the most salient aspect of the product. One finds in the market goods of different brand. inferior. defective. o Right to be heard. there Is provision for three-tier judicial machinery o District level o State level and o National Level This Act provides affective protection to the consumer from different types of exploitations. They are injurious to body and health. under-weight. public and co-operative sectors come under the purview of this Act. seller) influences his
. All suppliers of goods and services belonging to private. He has the right to buy or not to buy a product offered for sale. consumer is sovereign. size. adulterated.
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Right to Consumer: In a free market economy. excessive price.3 • This Act provides for the following rights to the consumer: o Right to safety. This Act redresses in a simple. to expect the product sale. such as defective goods. quality. to be what it is claimed to be. (II) Right to Choose: Under this right. o Right to seek redressal o Right to Choose o Right to be Informed This Act is based on the principle of compensation wherein fair compensation to the aggrieved party is provided for. the consumer must be assured access to variety of goods and services at competitive prices as far as possible. to expect the product to be safe. There are several fake. Under section 6 of Consumer Protection Act. Misleading or false advertisement. besides causing loss of money. He has a right to receive proper and efficient service and satisfaction. wrong information or in any other way. cheap and dynamic manner the grievance of the consumer in limited time.

(I) The District Consumer Protection Council : The State Government shall establish for every district.known as 'National Commission'. state and district levels. (III) Right to be Informed: Consumer has the right to get all necessary information on the basis of which he may decide to buy the good or service. so that he is encouraged to express his problems. standard. in an unfair or unnecessary manner. * Consumer Disputes Redressal Forums. Machinery for Redressal of Consumer Grievances:
To provide simple. deceptive and misleading advertisement and poor or negligent services. potency. This right implies that matters of interest to the consumer will receive due consideration at appropriate forums. speedy and inexpensive redressal of consumer grievances. (V) Right to seek redressal: Consumer has the right to get his claims and complaints settled against the manufacturers and sellers. (VI) Right to Consumer Education: Under this right. * Consumer Disputes Redressal Commissions known as 'State Commission”. complaints and unjust treatment meted out to him. Such an education creates awareness about his rights and he comes to know when to approach for the redressal of his grievance and exploitation. This helps a consumer protect himself against fraudulent. (IV) Right to be heard: Consumer has the right to present before the appropriate forum or authorities all those matters which effect his interests.known as 'District Forum”.tier quasi-judicial machinery at the national. Besides. purity. consumer is entitled to get Information or educated about those things which are necessary for him. quantity. * National Consumer Disputes Redressal Commission . Composition of the district forum: Each District Forum shall consist of -
. He has therefore the right to be Informed about the quality. price of goods. the act envisages three. etc. This right provides the consumer freedom from unfair trade practice or unscrupulous exploitation by the trader. This right Includes the right to make protest and file complaints.4 preference. it will be treated as intervention in his right to choose. by notification a council to be known as the District Consumer Protection Council with effect from such date as it may specify in such notification. it helps him secure compensation.

one of whom shall be a women. actually and voluntarily resides or carries on business or has a branch office. provided that in such case either the permission of the District Forum is given. the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation if any. or who has been or is qualified to be. actually and voluntarily resides. or carries on business or has a branch office. accounting. of the Department dealing with Consumer affairs in the State. where there are more than one. at the time of the institution of the complaint. Terms and age: Provided that a member shall be eligible for re-appointment for another term of 5 years or up to the age of 65 years. (2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction. as the case may be. claimed does not exceed rupees twenty lakhs. or personally works for gain.5 • • A person who is. integrity and standing and have adequate knowledge or experience or have shown capacity In dealing with problems rebating to economics. or personally works for gain.Chairman. industry. (a) The opposite party or each of the opposite parties. who shall be its President. or carry on business or have a branch office. wholly or in part arises. public affairs or administration. or personally works for gain. Every appointment shall be made by the State Government on the recommendation of Selection Committee consisting of the following namely: o The President of the State Commission. o Secretary. o Secretary. law. or the opposite parties who do not reside. or (b) Any of the opposite parties where there are more then one. commerce. incharge. Law Department of the State. Jurisdiction of the district forum: (1) Subject to other provisions of this Act.Member. acquiesce in such institution. a District Judge. whichever is earlier. There will be 2 other members who shall be persons of ability.Member. at the time of the institution of the complaint. or (c) The cause of action.
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where It appears to the State Government that such District Forum has exercised a jurisdiction not vested In it by law or has failed to exercise a Jurisdiction so vested or has acted in exercise on its jurisdiction illegally or with material irregularity. Every appointment shall be made by the State Government on the recommendation of the selection committee. Establishment: In every state. industry. Jurisdiction of State Commission: Subject to the other provision of this Act. There will be 2 other members who shall be persons of ability. (ii) appeals against the orders of any District Forum within the Stale. the State Commission Shall have Jurisdiction: (a) to entertain: (i) complaints where the value of the goods or services and compensation. commerce. the state government. But his appointment shall be made only after consultation with the Chief Justice of the High Court.6
(II) The State Commission: Regarding State Commission following provision have been made In Consumer Protection Act 1986.
. integrity and standing and have adequate knowledge or experience or have shown capacity In dealing with problems rebating to economics.. whichever is earlier.
Composition: Each State Commission shall consist of: • • A person (member) who is or has been a judge of a High Court. and shall not be eligible for re-appointment. by issuing a notification can establish consumer Grievance Redressal Commission to be called ‘State Commission’. if any claimed exceeds rupees 20lakhs but does not exceed rupees one crore. accounting. public affairs or administration. or up to the age of 67 years. law. and (b) to call for the records and pass appropriate and pass appropriate orders In any consumer dispute which is pending before or has been decided by any District Forum within the State. The Selection committee shall be composed of: o President of the State Commission — Chairman o Secretary of the Law Department of the State — Member o Secretary incharge of the Department dealing with Consumer Affairs in the State — Member
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Terms and Age: Every member of the State Commission shall hold office for a term 5 years. one of whom shall be a women. appointed by the State Government. who shall be its President.

They shall be persons of ability integrity. public affairs or Administration.
Term of Members: Every member of the National Commission shall hold office for a term of 5 years or up to the age of 70 years. Jurisdiction of the National Commission: Subject to the other provisions of this Act. law. Secretary of the Department dealing with consumer affairs in the government of India shall be its other members. whichever is earlier. to be nominated by the chief justice shall be its Chairman. shall be appointed by the Central Government. experience of. The National Commission: Following are the provisions of the Consumer Protection Act in respect of the National Commission: Establishment: By issuing a notification Central Government can set up a National Commission This Commission has been established at New Delhi. He shall be its President. commerce. Provided that no appointment under this clause shall be made except after consultation with the Chief justice of India. There shall be 4 other members including one woman.7
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Every appointment shall be made by the Central Government on the recommendation of a Selection Committee consisting of the following namely: • • • A person who is a judge of the Supreme Court. or have shown capacity in dealing with problems relating to economics. the National Commission shall have Jurisdiction as under
. Composition: The National Commission shall compose of: • A person (member) who is or has been a judge of the Supreme Court. industry. accountancy. The secretary Department of Legal Affairs In the government of India shall be Hs member. .

to call for the records and pass appropriate orders In any consumer dispute which is pending before or has been decided by any state commission where it appears to the National Commission that such State Commission has exercised a jurisdiction not vested in it by Law.
. claimed exceeds rupees 1crore.8 • • • to entertain complaints where the value of the goods or services and compensation. if any. to entertain appeals against the orders of any State Commission. or has acted in the exercise of its jurisdiction illegally or with material irregularity. or has failed to exercise a jurisdiction so vested.